Bon-Ton Q4 Stalls In Face Of Headwinds

The Bon-Ton Stores, for the fourth quarter ended January 30, posted net income of $50.6 million, or $2.42 per diluted share, versus $71.7 million, or $3.55 per diluted share, in the year-earlier quarter. Comparable store sales decreased 1.9% in the fourth quarter versus the previous-year period.

An analyst average estimate published by MarketBeat called for earnings per diluted share of $2.78.

Net sales were $927.9 million versus $942.6 million in the fiscal year prior quarter, while total revenue was $950.4 million versus $963.5 million in the 2014 period.

Fiscal 2015 fourth quarter results include a loss of 19 cents per diluted share due to severance costs, a loss of six cents per diluted share due to debt extinguishment and income of three cents per diluted share associated with an insurance settlement, according to Bon-Ton. 

For the full fiscal year, Bon-Ton posted a net loss of $57.1 million, or $2.90 per diluted share, versus a net loss of $7 million, or 36 cents per diluted share, in the year earlier. Comps decreased 1.3% versus the previous-year. Net sales were $2.72 billion versus $2.76 billion in the fiscal year prior, and net revenue was $2.79 billion versus $2.82 billion in fiscal 2014.

Fiscal 2015 results include a loss of 32 cents per diluted share due to debt extinguishment, a loss of 20 cents per diluted share due to severance costs and income of seven cents per diluted share associated with the insurance settlements, the company stated.

"Despite external headwinds and unseasonable weather that continued into the fourth quarter, we successfully managed elements within our control, reducing SG&A expense for the year and ending the period with inventories below prior-year levels," said Kathryn Bufano, Bon-Ton president and CEO. "We were pleased with our progress made on a number of strategic initiatives, including the introduction of key new brands and the expansion of localized merchandise content. Our omnichannel sales achieved double-digit growth, and we increased our online capacity with our new, fully automated West Jefferson e-commerce facility. Additionally, we successfully addressed our capital structure by increasing the borrowing capacity under our revolving credit facility and retiring two mortgage facilities in advance of their April 2016 maturity date."

Bufano added that, as Bon-Ton continues to advance "key initiatives in 2016, we look to deliver an improved gross margin rate and gross profit dollars through prudent inventory management, increased sell-thru of regular price merchandise and greater efficiencies in our distribution network. Central to our success is accelerated progress in our omnichannel strategies to coalesce our efforts in stores, online and mobile, as we look to engage our customer at all touch points. To that end, we are looking forward to the implementation of buy online pick-up in store in the second quarter, with an anticipated rollout to all doors in September of this year. We believe these initiatives will position us to deliver profitable growth and improved cash flow over the long term."

Bon-Ton operates 267 stores in 26 states under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.